Can you put an addition on with the Fannie Mae Homesyle loan?

I am looking at purchasing a home that is 1000 sq. ft. and looking to add a 1000 sq. ft. addition on to it. I will be living in the home and will put 20% down.
  • March 07 2014 - Royal Oak
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Answers (1)

Hey Scott,

In short the answer is YES!

Here are the details...

Repair Amount Limits and Requirements:
 •Up to 50% of improved value in cosmetic or structural repairs.
 •This amount includes: 10% contingency reserve and all fees and costs listed in the fee section.
•Exceeding 50% of improved value is a Fannie limit and no exceptions can be given for this.
 ◦Borrowers may NOT fund ANY overage.

 •Improvements must be attached to the property and add value.
•Kitchen appliances that are PERMANENTLY ATTACHED to Property (stove, dishwasher, built-in microwave, trash compactor, and built-in refrigerators).
•Properties needing Structural or Roof Repairs or where utilities are turned off will require 20% contingency.
 •Properties that have foundation or structural repairs require a foundation or structural report from a licensed engineer. Some examples include but not limited to, additional square footage being added, garage additions w/new foundations, cracks or settlement.
 •Repairs over $35,000.00 Renovation Total (Bid + Contingency + Fees) will require a feasibility study from Granite Loan Management or a HUD approved consultant.

Hope this helps!
Andrew

  • March 07 2014
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